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Punjab VB probing PPAs sends teams to private thermal plants after government nudge
Probing PPAs signed during the decade-long Shiromani Akali Dal (SAD) and Bharatiya Janata Party (BJP) regime between 2007 and 2017 is one of the main poll promises of the Aam Aadmi Party (AAP) and CM Bhagwant Mann-led government after getting assent to the Bill scrapping the Punjab State Vigilance Commission Repeal Bill, on October 25 ordered VB to start the probe afresh
Punjab Vigilance Bureau (VB), tasked with probing the alleged inflated power purchase agreements (PPAs), has started the physical assessment of constructions and equipment at the private thermal plants which contribute to fixed costs. As per VB officials, privy to the probe, the bureau teams have already visited a private thermal plant to check the claims made by it to justify fixed costs that were approved by the power regulator.
Probing PPAs signed during the decade-long Shiromani Akali Dal (SAD) and Bharatiya Janata Party (BJP) regime between 2007 and 2017 is one of the main poll promises of the Aam Aadmi Party (AAP) and CM Bhagwant Mann-led government after getting assent to the Bill scrapping the Punjab State Vigilance Commission Repeal Bill, on October 25 ordered VB to start the probe afresh.
The chief minister, during his press conference regarding the takeover of GVK Group’s 540MW thermal plant at Goindwal Sahib in January this year, said the government will investigate the allegations into PPA signings.
“We will probe the PPAs signed during previous governments. We have also learnt that PPAs for solar power projects were also signed to favour certain companies. We are probing all,” the CM said while replying to a question from HT.
Early this week, the state government sent a reminder to the VB to complete the probe at the earliest.
In its reminder, the vigilance department has instructed the VB to complete the investigation promptly and to proceed with identifying and prosecuting the culprits.
As per officials, the PPAs under lens are for nearly 3,000 MW of thermal power, and 700 MW of solar power.
This is not the first time that an incumbent government in the state has ordered a VB probe into the PPAs. Former chief minister Charanjit Singh Channi, in November 2021, had presented a white paper on PPAs on the floor of Vidhan Sabha. The then CM had also announced a VB probe into the matter, however, later the probe was shifted to the Punjab Vigilance Commission.
The chief vigilance commissioner was asked to inquire into aspects of non-transparency, financial impropriety and the issue of lopsided terms of agreements, but the probe remained inconclusive.
Meanwhile, there is discontent within the bureaucracy also over the VB’s probe and they have raised concerns about potential adverse effects on investment after the VB teams visited a private thermal plant. However, after the CM’s go ahead for the probe, the vigilance is expediting its investigation.
An official quoted above said, prima facie, it appears that the then officials at the helm of affairs did little to protect the state’s interest.
“Our initial probe reveals that a few of the senior officials were aware of the wrongdoings but kept mum,” said a VB official privy to the probe.
“The bureau will share a report with the government by the end of this month”, the official said, adding that the cost of similar power plants in Haryana was almost 30% cheaper.
